It was born with a pledge of $50 million in support from two levels of government and Western University.

Five years later, the London Medical Innovation and Commercialization Network is largely a $10-million fund with London taxpayers footing the bill, and an underwhelming performance, say critics.

“The city should have been more accountable to make sure (Western) lived by the terms and conditions. Where is the money today?” asks Gerald Slemko, chief executive of Trudell Medical, London’s largest medical device manufacturer.

“What is (the network) doing, what is the future, what is happening with the money?”

In 2014 a pitch was made to London city council to support the creation of what is now known as the London Medical Network, with a pledge it would create more than 500 jobs and kick-start investment in health-care research that could be commercialized.

The city money would leverage $20 million from Western University and another $20 million from FedDev Ontario, a federal economic development agency, council was told.

Today, FedDev support has been a sliver of what was promised, and the Western donations are largely in-kind, through staff and research work. A financial summary provided to council in March 2018, reported there is $7.7 million left of the $10 million.

Without greater financial contributions from the other partners, the network has little chance of doing much good, said Slemko.

“There is a role for the fund, but $7 million won’t get you much. In fact, $30 million (if Western had paid up) is just a starting point.”

John Capone, director of research at Western and a LMN board member, rejected suggestions Western has not held up its end of the bargain. It has made solid investments, but it will take time to see results, he said.

“The London Medical Network is not an ATM for Western,” said Capone.

“It was a commitment to co-invest with the city on projects. There was never the intent to write a cheque to LMN, “ said Capone.

However, a report to city council in 2014 suggests that was the intent.

“The City of London’s investment of $10 million will activate the network and result in the immediate leveraging a grant of $10 million from Western University, and an additional commitment of $10 million over 10 years,” it stated.

But Capone warned against dismissing in-kind support, saying it is important to LMN’s work.

“There will be significant, in-kind contributions,” he said referring to space, infrastructure, equipment, staffing and recruiting researchers. He is counting $6 million to add research positions in musculoskeletal health as a benefit to the network.

“For a community to be competitive, especially in technology innovation, you cannot do it on your own, you need partnerships and it is a long game. The LMN is successful, it manages to bring major organizations, hospitals, universities and the city in partnership.”

The performance of the network has come into focus again as commercializing medical research, once a focus at city hall, is absent from the Growing Our Economy chapter of the city’s strategic plan. That has caused city councillors Phil Squire and Maureen Cassidy to say they will call for a review of the city’s support for the network when the strategic plan comes up for review in March.

The politicians and Slemko questioned the network’s performance over five years, saying few jobs have been created and it is not living up to its promise of driving research and health care innovation and investment.

But Capone argues, “There is a lot of transparency in what has been spent,” adding reports have been sent to city hall. Also, the mayor and city manager Martin Hayward sit on the network’s board.

“The city is hand in hand with us,” he added.

Slemko also worries the city cash has turned into a fund to be spent by Western, without the school having to account for how it is spent.

“I am not sure the structure there works,” he said. “I am concerned the money is sitting there and Western may scoop it.”

David Barrett, director of the London Medical Network, is a full-time professor at Western’s Richard Ivey School of Business and now oversees the network as director of the Ivey International Centre for Health Innovation. He has succeeded failed mayoral candidate Paul Paolatto as director.

“I understand the concern of some individuals who may not be privy to all the details of how the money has been used,” said Barrett.

Investment decisions were made by the board before he took the job in September.

In 2018, a report was made to city council about the network’s investments, said Barrett. That report is a one-page financial summary and two pages of graphics on a flow chart.

Blair Poetschke, a London technology entrepreneur, believes there is a role for the medical network to play in London, but he said it has to be overhauled. It is too focused on supporting Western and hospital research and should be more focused on entrepreneurship,

“We need to develop an entrepreneurial culture in London and organizations like the medical network should accelerate business growth. What we do well is incubate and one of our key areas is health care,” he said.

He also points to the network’s board as made up largely of people from institutions without a lot of health care entrepreneurial experience.

“It needs more of a private sector presence,” he said.

London Medical Network

2014: Created

2015: $10 million from city paid to the network

2017: $8.2 million, net assets

2018: $7.7 million, net assets

The promise:

“The City of London’s investment of $10 million will activate the network and result in the immediate leveraging a grant of $10 million from Western University, and an additional commitment of $10 million over 10 years.”

“Western has made an application to FedDev Ontario under its Southern Ontario Prosperity Initiatives Program for a grant of $20 million to assist in the creation of the physical and business infrastructure.”

City hall staff report, 2014

Reality check:

The city made its payment in 2015

Western has made a cash payment of just over $1 million, and in-kind support of staff, office space and equipment it estimates totals $9 million.

The promise

Nearly 550 new long-term jobs in research, industry and early stage companies. Estimated $562 million in value to local economy annually. Estimated 140 per cent return on investment. Nearly $60 million in indirect employment.

City hall staff report, 2014

Reality check:

$1.5 million to Adeiss, a 3D printing company, $900,000 to 30 small businesses ($30,000 each) and $3 million to Robarts Research Institute

Five jobs at Adeiss, existing positions transferred from Western. Claims of more than 60 jobs at those 30 businesses have not been validated. Some of those businesses are not in London and do not do health-care research. There are no details about the $3-million investment.

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